C150253 Feasibility Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I The LLRC will be the lead for financing and project management. Lower Latham Asset Management Company will also facilitate the financing by issuing assessments, if necessary. New Frontier Bank is providing bridge loan financing of the pro~ect until the CWCB loan can be acquired. XI. FINANCIAL ANALYSIS To fund the purchase of the subject water rights, the LLRC obtained two individual bridge loans from New Frontier Bank. The initial loan, for the purchase of the Rothe Farm, is in the amount of $2,152,243 and is in the name of Colorado Deferred Exchanges, Inc. At the time of the loan, LLRC anticipated selling other properties to assist in paying off the loan through an I.R.S. Code 1031 tax- free exchange. To date, LLRC has not completed the exchange. The maturity date for the Rothe Farm loan is September 1, 2007 A second loan in the amount of $626,570 was obtained from New Frontier Bank for the purchase of the Dejong Farm water rights. The maturity date for the Dejong Farm water purchase loan is November 15, 2007. I The interest rate for each loan is equal to the Dow Jones Prime Rate, which is currently 8.25 percent. LLRC is requesting a CWCB loan in the amount of $1,974,847 for the purchase of six shares of stock in the LLDC and flow monitoring equipment as outlined below: Estimated Total Projed Costs Estimated Engineering Costs: Feasibility Study - Douglas C. Seely Monitoring System - Douglas C. Seely Appraisal - Bud Clemons, ARA Estimated Total Engineering Costs Actual Construction Costs: Data logger/radio equipment - EDS Measurement Structures Actual Total Construction Costs Lower Latham Ditch Shares Estimated Bridge Loan Interest Estimated Total Costs $3,000 $6,200 $2,700 $11,900 $59,230 $22,140 $81,370 $2,016,525 $84,480 $2,194,275 The estimated total pr~ject is $2,194,275. Interest rate accrued on the bridge loan is expected to - 7 -